G20 financiers decline “cryptocurrency” term

Cryptocurrency isn’t real money in literal meaning, as is has no standard currency function and isn’t reliable from the point of savings.

As TASS reports, this conclusion was voiced at G20 Meeting of Finance Ministers and Central Bank Governors, held on March 19-20 in Argentina’s capital Buenos Aires.

“G20 agenda this year was focused on issues of cryptocurrencies or, to be precise, cryptoassets. The attempt to make a reference to cryptocurrency in Final Report failed, so cryptoassets term was used instead,” said Sergei Storchak, Deputy Finance Minister of the Russian Federation, who led the Russian delegation.

G20 Final Report reads that G20 countries outlined the necessity of constantly observing the situation with cryptoassets, which do not yet jeopardize the world financial stability. At the same time, many counties emphasized the importance of elaborating general principles of regulation.

“Despite the fact that this is not yet a financial stability issue (nonetheless, certain speakers think that the situation may rapidly change), everyone confirmed that it implies other risks: protection of consumers and investors, tax avoidance, revenue laundering. So we agreed on the necessity of constant observation,” First Deputy Governor of the Bank of Russia Ksenia Yudaeva said.

The document also mentioned the importance to incorporate FATF (Financial Action Task Force on Money Laundering-Banks.am) standards in cryptocurrency issue.

“We commit ourselves to using FAFT principles in all aspect of cryptocurrency issue, where it is relevant and propose FAFT to observe those standards as well as promote their global application,” the document reads.

Minister of Finance of Argentina Nicolas Dujovne stated in the final news conference that in July this year representatives of financial sector from G20 states can present first suggestions, aimed at regulation of cryptocurrency sector.

G20 Meeting of Finance Ministers and Central Bank Governors was organized within the frames of preparation for G20 Summit. This year it will be held on November 30-December 1, Buenos Aires.